Why Costs are Rising

Hospital & Physician Services

Like other businesses, physicians and hospitals face increasing economic pressures:

• Increase in number of physician services. Physician costs for Wellmark members increased nearly 60% between 1997-2002.
  
  
• Increase in outpatient services. Outpacing even pharmacy costs, outpatient services are the fastest growing component of health care costs. For the past five years, outpatient services have followed an increasing trend.
  
  
• Medical personnel shortage. A nationwide shortage of nurses and other medical professionals means providers must pay higher wages to recruit and retain employees.
  
  
• Patient demand for latest treatment. Patients want state-of-the-art treatment, so hospitals and doctors must invest in the latest technology, which comes with a high price tag.